Rousseff was accused of disguising shortfalls in the government’s accounts – though some fretted that it was a weak basis for ousting a leader in a presidential system, the impeachment process was procedurally rigorous.

But only a few weeks into the tenure of Rousseff’s substitute, Michel Temer, her camp enjoyed something resembling revenge. Corruption allegations against supporters of Temer’s government quickly emerged, leading to the replacement of five ministers in the first six months.

Rousseff’s defenders didn’t miss a beat: “The institutions are working!” they declared, with the irony turned up to full. Not that they admitted any wrongdoing on their side; rather, they were denouncing the corrupt politicians who had posed as guardians of the constitution while voting to impeach Rousseff.

And so it continues. Former president, Luiz Inácio Lula da Silva, who orchestrated Rousseff’s election in 2010, has now been sentenced to almost a decade in prison for corruption and money laundering.

He can still appeal the decision, but his chances of avoiding prison time are slim. What does all this say about judicial institutions and the future of politics in Brazil?

First, a recap on the ongoing corruption scandal. “Operation Car Wash” is a colossal investigation into a kickback scheme centered around Petrobras, the national oil company.

The scheme was organized by government-appointed managers in the firm, who colluded with a cartel of contractors. Bogus bidding rounds led to massive over-invoicing, with part of the money returning to the fraudulent managers.

Much of this cash was apparently siphoned off to the secret coffers of political parties, including Lula and Rousseff’s then-ruling Worker’s Party (PT).

Since 2014, the operation has produced 157 convictions, and issued more than 1,500 years of prison sentences. Of the roughly US$ 12 billion prosecutors are trying to recoup, about US$ 234 million have already been recovered from offshore accounts. Billions of reais in fines are being paid by just two giant companies, Odebrecht and its affiliate Braskem.

Yet, while Operation Car Wash is extraordinary in its proportions, it’s not entirely novel. In fact, the structures needed to support such a colossal investigation have been under construction for a long time.

Built to Last

Brazil’s anti-corruption mechanisms have been incrementally improving ever since the return to democracy in the late 1980s. The country boasts a highly professional civil service, including increasingly well-funded and trained public prosecutors, supported by the equally competent Federal Police.

It also benefits from a vibrant and demanding civil society, as well as fierce competition among political parties. This is far from an unhealthy system, and the independence and strengthening of anti-corruption institutions is a testament to how far Brazil has come since democracy was reinstated.

Still, when it comes to the political implications of the crackdown, Brazilians are divided. The traditional center-right is mostly reassured that the country’s institutions are functioning as intended, at least to the extent that corrupt politicians are being prosecuted.

It helps that the focus is specifically on Petrobras, a state-controlled company that economic liberals consider not only corrupt but also highly inefficient.

But predictably, they’re less enthusiastic about accusations leveled against politicians from the now-ruling center-right. They’d rather press on with the Temer government’s planned reforms, which they see as a chance to return to the liberalizing project of the Cardoso presidency (1994-2002), and as essential for future solvency.

The mainstream left, on the other hand, is highly suspicious of Car Wash, which it regards as a partisan effort to undo the progress on welfare policy since the PT came to power in 2003. However, this is also in part a panicky reaction to the effective destruction of the PT’s preeminent position.

Despite improvements in the functioning of the state, Brazilian political parties are not, in themselves, the strongest of institutions. They depend heavily on charismatic leadership, rather than robust internal procedures to elect party candidates and leaders.

The downfall of Lula will therefore drastically weaken the PT, which has so far not signaled any serious internal effort to renew its leadership or distance itself from past mistakes.

Work to Be Done

A growing contingent of young Brazilians are demanding neither more nor less government, but better governance. This is directed at all those in power across the political spectrum, a culmination of earlier demands from both the left and right.

The issue that all parties now face is that it has become politically inconceivable to drastically alter the country’s current macroeconomic model, or to scale back robust investments in welfare, the forces that created Brazil’s young, informed and aspirational middle class.

That group is broadening and solidifying – and its attention is duly turning to both the quality of service provision and the conduct of national leaders.

The lead Car Wash prosecutor, Deltan Dallagnol, personifies this new Brazilian mindset: a fervent Baptist wielding a degree from Harvard Law School, he is 37 years old and has no time for traditional Brazilian patronage systems, whether in everyday life or in the upper echelons of politics.

But while this might look like a deadlock between the status quo and the future, in fact, it’s typical of the way the country works. Political scientists argue that in Brazil, policy changes “through accretion, rather than substitution” – that reforms aren’t contested, overturned and replaced with others, but simply layered on top of each other.

So while the liberal macroeconomic orthodoxy entrenched in the 1990s remains in place, so does the wealth redistribution project that came to fruition in the 2000s. The country has now reached another juncture, one where systemic corruption and inefficiency are no longer tolerated.

The Car Wash metaphor is highly apt: Brazilian leaders are being compelled to clean up their act and reform the system that has protected them for years.

It remains to be seen just how long the myriad investigations will take, and whether they will be constrained by politics – there’s no knowing how much the fallout could damage the economy or whether the political system will be properly reformed, especially when it comes to campaign finance.

Most crucially of all, the archaic and undemocratic internal structures of Brazil’s umpteen political parties must be challenged and dramatically upgraded. Only once these things are achieved will a desperately needed new generation of national leaders start to emerge.

Felipe Krause is a PhD Candidate in Politics and International Studies at the University of Cambridge

This article was originally published in The Conversation. Read the original article here: https://theconversation.com/lulas-conviction-proves-brazil-is-strong-enough-to-reform-itself-80979

According to the poll, Lula would be elected in the second round with 52 percent of the overall vote. Possible rivals included in the survey were Geraldo Alckmin, current governor of Sao Paulo, who would receive 11 percent of the vote.

João Dória, current mayor of São Paulo, would receive 13 percent of votes. Marina Silva, former senator and environmental minister, would receive 15 percent of the vote. Lawmaker Jair Bolsonaro would receive 8 percent of the vote.

Finally, Aécio Neves former senator and governor of Minas Gerais who was implicated on charges of bribery would receive 3 percent of the vote.

Lula would still have to stay clear of jail, since he has also several charges of corruption and money laundering leveled against him.

The survey, conducted between June 2 and 4, was released Tuesday. Apart from Lula’s popularity, it showed that the current Brazilian administration, headed by Senate-imposed President Michel Temer, received a mere 3 percent approval rating and that the population held his government directly responsible for unemployment, which has reached 14.5 million workers.

It also emphasized that the current recession in the work sector, which has affected first and foremost the working class and those who remain in poverty, is blamed on the incompetency of Temer’s administration.

Lula is the preferred presidential candidate among all age groups, independent of one’s level of education, income and gender.

The Vox Populi-Central Worker’s Union poll was undertaken in 118 municipalities in every state in Brazil including city capitals, metropolitan regions and the countryside. Two thousand people over 16 years old were interviewed and the margin of error is 2.2 percent.

General Strike

The headquarters of Brazil’s trade unions have issued a call for a new general strike to shut down Brazil’s largest cities on June 30th, to protest neoliberal labor and retirement pension reforms, as well as demand the resignation of president Michel Temer who is currently embroiled in corruption controversies.

“If the National Congress resolves to vote on the reforms, we will move forward with the mobilizations. We will not allow them to vote against the will of the Brazilian people,” the secretary of the Central Worker’s Union (CUT), Sergio Nobre, said.

In addition to the CUT, the General Confederation of Workers of Brazil, the Central of the Brazilian Trade Unions, the Trade Union and Popular Confederation, the Central of the Workers and Workers of Brazil, the Força Sindical, the Central Intersindical of the Working Class, The New Central Union of Central Public Employees, and the General Union of Workers have also announced participation in the strike.

The austerity measures proposed by Temer would raise the minimum age to retire and collect pension to 65 years. While international organizations such as the International Monetary Fund (IMF) have supported Temer’s neoliberal policies as being conducive to economic growth, the policies have been widely protested and condemned as harmful to the interests of the poor and working classes.

The proposal also comes in the midst of a massive wave of layoffs. Unemployment has reached a record high of 13.6%, or 14 million Brazilians without jobs.

In late April, over 35 million Brazilians participated in a general strike called by CUT to protest the economic austerity of Temer.

In the midst of the growing discontent directed at neoliberal policy proposals, new waves of protests against Temer, who only took power after what some call a parliamentary coup to remove former President Dilma Rousseff, began after recorded evidence showed Temer approving bribes.

In one of the audio tapes, the president can be heard giving authorization to former JBS executive Joesley Batista to pay US$ 637,000 to purchase the silence of Eduardo Cunha, the former president of the Chamber of Deputies regarding a corruption scandal.

teleSUR

Meirelles said the economy recovered quickly from previous episodes of political turbulence when there was no doubt about the future of economic policy.

But Moody’s Investors Service said that the corruption scandal ensnaring President Michel Temer poses a rising threat to the recovery of Latin America’s largest economy.

Moody’s reduced the nation’s outlook to negative from stable and kept its rating at two levels below investment grade at Ba2, according to a statement on Friday. That’s a notch below Turkey and Russia. Fitch Ratings and S&P Global Ratings rank Brazil at the same level.

“The risk of prolonged political uncertainty can’t be ruled out,” Moody’s analyst Samar Maziad said in a phone interview. “There’s now a risk that the reforms could be stalled.”

While the Temer administration’s ability to deliver on initial reforms came as a positive surprise, his agenda is now at risk as the odds of an impeachment or a resignation climb, according to Maziad.

That includes plans to restore the sustainability of an overburdened social security system and increase business confidence.

Moody’s expects Brazil’s economy to grow 0.5% in 2017 after falling into its worst recession in a century last year. Maziad says the recovery may be at risk amid allegations that Temer paid off a witness in the Lava Jato corruption scandal that led to the impeachment of his predecessor, Dilma Rousseff.

“This could lead to lower growth forecasts this year and next,” she said. “Still, it’s unlikely there will be a double-dip recession or contraction.”

Mercopress

More than 35 million people in Brazil have been taking part in one of biggest general strikes in the country’s history against President Michel Temer’s neoliberal reforms, bringing the country to a standstill.

The strike was largely organized by the Unified Workers Central, or CUT, the largest union federation in Latin America, and the Workers Party of Brazil, former President Dilma Rousseff’s political party.

“Temer does not even want to negotiate,” said Vagner Freitas, national CUT president. Freitas estimated that the strikes would break previous records with more than 35 million people participating by leaving their work.

In Brazil’s biggest city and economic hub, São Paulo, only one subway line was operating, 70 major routes were blocked off as was access to the city’s major airport.

Before daylight, a number of protesters clashed with police while trying to occupy a vacant building. Police were also seen firing tear gas to disperse protesters and at least 12 people were detained.

Similar scenes were also seen further South in Santos, where police reportedly used tear gas in an attempt to clear roads leading to the city’s port.

In the city of Goiânia in central Brazil, police were seen violently breaking up protesters, with one man being forcefully grabbed and another shown bleeding.

David Miranda, the first LGBTQ city councilor of Rio de Janeiro, was hit by a car during Friday’s protests after setting up traffic cones to block vehicles. The car stopped in front of Miranda and suddenly accelerated, toppling him and another protester. Both demonstrators were not critically hurt.

In Rio de Janeiro, the bridge between Rio de Janeiro and the neighboring city of Niterói was jammed tight with traffic for a number of hours in the morning. Large protests also took place in Salvador, the capital of the northeastern state of Bahia, and in Curitiba in the southern state of Paraná and Belo Horizonte, the capital of Minas Gerais.

In Porto Alegre, police also launched tear gas and smoke from fires lit on the streets billowed into air. Banks, schools and transport were brought to a halt in Florianópolis, capital of Santa Catarina state, as police surrounded the crowds of protesters moving through the streets.

Other cities across Latin America’s largest country had a similar fate. People set up road blockades, burning tires in the streets, and protesting the government and its neoliberal labor reforms and austerity programs, with many holding signs of “Fora Temer!” (Temer Out!).

Authorities had boarded up state buildings in the federal capital of Brasília and local Brazilian media reported that taxis and rideshare applications offered people discounted fares to help keep cities running amid the strikes. In rural areas, locals were seen blocking off streets in protest using tractors.

Dozens of unions, grassroots organizations, teachers, church leaders, civil servants also threw their support behind the strike.

“It is going to be the biggest strike in the history of Brazil,” said Paulo Pereira da Silva, president of trade union Força Sindical.

“The idea is not making an action, but getting people to the streets and squares, stopping all production and services; transform cities into ghost towns,” said Vera Paoloni, director of communication of the Single Confederation of Workers, in the state of Pará, Vera Paoloni.

“Reforms of such importance can not be implemented without extensive discussion,” said Leonardo Steiner, the auxiliary bishop of Brasília, in an interview published by the National Conference of Brazilian Bishops.

The strike was called immediately after Temer’s administration pushed through a controversial labor reform bill on Wednesday in Brazil’s chamber of deputies.

The reform would undermine workers’ rights by eliminating payment for their commute from their contracts, reducing compensation for employer abuse, and most importantly, allowing employers to reduce workers’ salaries while increasing their work hours.

The bill, which proposes to end mandatory union dues, must still be approved by the Senate. It was approved by Brazil’s lower house by 296 votes to 177.

Temer is also proposing a 20-year freeze on public spending and cuts to pension protections.

The general strike comes amid a dismal disapproval rating for the Temer administration — a staggering 87 percent, according to the latest Ipsos poll.

The mass mobilization of workers and civil society also comes on the heels of ongoing protests, such as the five-day encampment of indigenous peoples and a police union protest, both occurring in front of Brazil’s Congress.

“I invite all of you to participate in the strike, in an orderly fashion without chaos,” Bishop Flavio Giovanele, a strike organizer, told Brazilian news site Plus 55.

“Because if we want a peaceful Brazil, we need peaceful protests. But we also must protest steadfastly our position in regards to the pension and labor reform.”

The strikes also come on the back of record unemployment figures, which topped more than 13 million people, adding to the country worst economic recession in history. Temer’s government, however, claims that it had inherited the problem and is working to change the situation

Conservative leaders around the country have condemned the strike and threatened unions and striking workers with fines and wage discounts.

Lula and Rousseff’s Encouragement

Former Brazilian presidents Dilma Rousseff and Luiz Inácio Lula da Silva praised their country’s general strike on Friday, which was the largest held in decades.

Rousseff and Lula, who both belong to the Workers’ Party, said the nationwide action was an important demonstration of resistance to President Michel Temer’s neoliberal administration.

“The general strike shows that the Brazilian people are courageous and capable of resisting the coup,” Rousseff posted on her Facebook page.

She also commented on the strike in a public statement, saying “my heart is filled with hope” and that “the struggle for better days for all Brazilians is just beginning.”

Lula, Rousseff’s predecessor, also weighed in on the historic mobilization of Brazilian workers.

During an interview with Radio Brasil Atual he described the strike as a “total success,” adding that “there’s no other way except to continue the fight, to recuperate and improve rights and the quality of life for the Brazilian people.”

Lula emphasized that the streets of São Paulo and São Bernardo do Campo, where he lives, are empty. According to Lula, this is a sign that “the people have decided to paralyze the city in protest against the stripping of our rights, against labor reform, against social security reform, unemployment and salary reduction.”

“Not even on Sundays have I seen such light traffic as I’ve seen today. It’s satisfying to know that Brazilian people are becoming conscious,” he added.

Lula also refuted promises made by Temer that Brazil’s economic situation would improve after Dilma was impeached.

“To say that things would improve was a lie,” he said. “Demolishing worker’s rights doesn’t improve anybody’s life.”

Lula joked that the general strike has even extended to his daily exercise regime.

“Today I’m on strike. I’ve put aside doing exercises. Even the Lula Institute is not functioning.”

Pension and Labor Reforms

Brazilian unions called the first nationwide strike in 21 years to protest against pension and labor reforms being pushed by the conservative government of President Michel Temer.

“We are going to have the biggest general strike in the history of Brazil,” said Vagner Freitas, the president of the Central Workers Union (CUT).

Brazilian unions called Brazil’s first nationwide strike in 21 years against a tough austerity and reform bill put forward by President Michel Temer. The bill aims to reduce labor costs and erode the power of unions. Temer said he hopes it will kickstart an economy battered by a recession. Workers’ Groups think the reforms go too far and question the government’s legitimacy.

São Paulo, Brazil’s most populous city and financial center, was the worst affected by early Friday. All public transport networks were closed, bringing the city to a standstill. Meanwhile, police resorted to firing tear gas at protestors who had blocked off a highway.

Similar scenes were reported in Rio de Janeiro, where protestors lit a fire on a major bridge, disrupting commuter traffic. Police also fired tear gas at a small group of protestors outside the main bus station. While many banks in Rio were closed, the city appeared to be less affected as cafes, restaurants and shops operating as normal.

Transport services were also completely shut down in the capital Brasília, Belo Horizonte and Curitiba.

Brazil’s National Civil Aviation Agency reported that “operations at the airports are functioning normally,” although there were multiple reports of delayed and canceled flights.

The strike comes two days after the lower house of congress passed reforms to reduce labor costs and erode the power of unions. The labor reforms must now be passed by the Senate.

Since coming to power last year, Temer has advanced a tough austerity and reform program in a bid to kickstart an economy battered by a recession.

But his term has been marred by demonstrations and ongoing corruption scandals since he took power from former leftist President Dilma Rousseff after she was removed for breaking budget rules in what her supporters dubbed a “coup.”

Rousseff’s Workers Party has its roots in labor and social movements, which have rallied against Temer.

Adding to Temer’s troubles, nearly a third of his cabinet and congressional allies are under investigation as part of a widening corruption scandal that has revealed eye-popping levels of graft at the top of government.

Government figures released Friday showed that Brazil’s unemployment rate covering the first quarter of 2017 was 13.7 percent, up from 13.2 percent in the last quarter.

Unemployment in Brazil has been rising steadily for the past two years, ever since the economy was hit by recession in early 2015. More than 14 million are currently out of work, government statistics show.

The economy shrank by 3.8 percent in 2015 and is expected to have contracted by a further 3.5 percent in 2016, marking the country’s most painful recession in more than a century.

Government and central bank chiefs project a modest return to growth this year, although that largely hinges on whether Temer will succeed in passing proposed austerity reforms.

teleSUR/DW

Brazil’s president Michel Temer and senior lawmakers are still unwavering in their support for a major pension reform despite nationwide protests against the proposal and the dramatic expansion of a graft probe threatening the ruling coalition.

Moody’s Investors Service added a vote of confidence in the government, citing the ongoing progress of fiscal reforms as a reason for revising its outlook for Brazil’s sovereign credit rating to “stable” from “negative.”

Brazil’s currency and benchmark stock index both rose around 2.0% on Wednesday, leading a rally in Latin American assets after the U.S. Federal Reserve signaled a gradual pace for interest rate rises.

Recent developments underscored that the political momentum is still in President Temer’s favor as he pushes head with an unpopular austerity agenda that has drawn opposition into the streets, but retained the support of congressional leaders.

The public backing from legislative allies was particularly important after Brazil’s top public prosecutor moved on Tuesday to target dozens of senior politicians as part of a corruption probe centered on kickbacks at state oil company Petrobras.

Despite the snowballing investigation and well-organized union resistance, Thomaz Favaro, a political analyst with global consultancy Control Risks, said Temer has built a more robust coalition than his predecessor, Dilma Rousseff, who was impeached last year as the Petrobras scandal gained steam.

“The coalition behind Temer has proven to be more stable than Dilma’s and will continue to be so despite corruption investigations, due to the degree of ideological affinity that unites it on business initiatives and concern for Brazil’s fiscal position,” he said.

Asked if the scandal would interfere with the legislative calendar, Senate President Eunicio Oliveira and House Speaker Rodrigo Maia said nothing had changed. Both said investigations would give a chance to clarify allegations in the press.

Their steadfast support contrasted with rowdy demonstrations that occupied the finance ministry in the capital Brasília and snarled traffic in the business hub of São Paulo to protest Temer’s proposed reforms.

The impact of a strike by public transportation workers was lighter than anticipated in Rio de Janeiro and other smaller cities. Still, an afternoon march drew tens of thousands to Avenida Paulista, a midtown thoroughfare in São Paulo, where ex-president Lula addressed the crowd.

The protests highlighted well organized union resistance to limiting pension benefits and raising the retirement age as the government has proposed.

A smaller demonstration in Rio was marked by clashes between masked protestors and police, who used tear gas to control the crowd.

Temer told small business owners in Brasília that pension reform was essential to lifting the economy from its worst slump on record and closing a huge fiscal deficit before it triggered an even deeper crisis.

“We can’t do something too modest now or in four or five years we’ll have to follow the example of Portugal, Spain, Greece and other countries that had to make a much bigger cut because they didn’t take preventative measures,” he said.

The Voice of the Streets

Representatives of more than 170 civil organizations demonstrated at Brazil’s Chamber of Deputies Tuesday (March 14) against the pension system reform proposal being discussed by a special committee at the house.

The protesters presented an open letter to the head of the committee, Carlos Marun, from the PMDB party, asking them to dismiss a constitution amendment bill (PEC 287) to overhaul the rules of the country’s pension system.

The letter argued that the bill “is based on false premises and violates social rights in many ways.” They also urged the lawmakers to discuss the matter with the society to work out alternatives for improving the social security system and stop the drive to revoke social rights.

Moreover, they went on, the reform proposal will disfigure the pensions system and make retirement and other social security benefits difficult to attain.

The main objections include a minimum eligibility age of 65 for men and women to retire, a requirement of 49 years of contribution into the pension system as a condition of eligibility to the full amount of the retirement benefit, and fixing bereavement and welfare benefit amounts below that of the minimum wage currently in effect.

After the demonstration, Claudio Lamachia, federal head of the Brazilian Bar Association (OAB), urged discussing the matter further before putting a bill to change the pension system to vote. “We understand a reform is needed, but it cannot be a setback or threaten people’s rights.”

Lamachia said there are unanswered questions that should be addressed. “The very question as to the existence of a social security deficit in the first place. This is an issue that calls for transparent debate, and that’s what we ask of this House,” he explained.

“We are here to say, in an orderly, organized, and clear manner, we want this matter to be discussed more transparently.” For Lamachia, the pension reform is too relevant an issue to be put to vote in parliament without listening to the society.

Acts of vandalism, congested traffic, and halted trains and metro lines marked the National Day for the Fight against the Labor and Pension Reforms, against the overhauls under deliberation by special commissions at the Chamber of Deputies. President Michel Temer has reiterated his pleas for lawmakers to approve the changes as quickly as possible.

In the early hours, members of rural movements stormed the Finance Ministry, in Brasília, after breaking glass windows in the building.

The protest gathered around 500 people, some of whom accompanying children, the Military Police reported. According to the Landless Workers’ Movement, however, 1,500 people convened for the rally.

At least two protests against the pension reform caused an impact on the traffic in major thoroughfares in downtown Rio de Janeiro. Members of the Internationalistic Homeless Front (FIST) marched all the way to the city center.

The rallies slowed down the traffic on Brasil Avenue, the main connection between north and west zones to the city center.

Port workers staged their demonstration outside the entrance to the Port of Rio de Janeiro.

São Paulo

The city of São Paulo woke up Wednesday without its chief means of public transport, the metro, which serves some 3.2 million people. Also, nearly all bus lines were halted, and the traffic was blocked in several areas due to the stoppages.

The decision of metro workers to join the countrywide movement violated a court ruling which stipulated that operations were not to be interrupted in the rush hour (6-9 am, 4-7 pm) and were allowed to be reduced to 70% in other time periods.

To alleviate the traffic congestion, the authorities suspended the city’s mandatory license-number rotation for vehicles, allowed the use of bus-dedicated lanes for all vehicles, and removed the fees for parking spaces in the blue zone.

In addition to the increase in the number of cars on the streets, further hindrances were brought about by blocks in at least five locations in the city.

Bahia

In Salvador, the Military Police announced that some 9 thousand took part in the demonstrations, most of them bank workers and education professionals.

According to Cedro Silva, president of Bahia’s Unified Workers Central (CUT), the rallies are a way for workers to resist the proposal for the labor reform.

“We won’t let millions of workers to be harmed with this reform, because the people have not been heard. We won’t let this reform be approved, because it’s a setback for the country,” the union leader argued.

The Reforms

One of the most controversial topics in the labor reform is that it allows internal deals between employers and workers to supersede the law, which may lead to a change in the work day, among other things.

As for the pension overhaul, the great debate centers on setting the minimum age for men and women at 65, abolishing the possibility or retiring for length of contribution, currently set at 30 years for women and 35 for men.

MP/ABr

Brazil’s Minister of Justice, Márcio Thomaz Bastos, defended political reform for the sake of strengthening democracy and combatting corruption in the country.

“No democracy functions well without strong, independent parties and mechanisms to control the influence of economic forces on the electoral process,” the Minister affirmed during his address to the 4th Global Forum to Combat Corruption, in Brasí­lia.

Earlier this month, President Lula determined the creation of a group formed by three Ministers: Aldo Rebelo (Political Coordination), Luiz Dulci (Presidential Executive Office), and Jacques Wagner (Economic and Social Development Council), under the coordination of Minister Bastos.

The group has 45 days to discuss the strengthening of parties, improvements in the rules of the electoral system, and public financing of campaigns.

Bastos says he plans to gather proposals from and draw on the experiences of universities, social movements, productive sectors, and government and opposition representatives.

“Based on these contributions and the debates they produced in the National Congress, we shall present a proposal capable of taking this decisive step towards a more authentic and well organized representative system.”

Referring to the activities of the Brazilian government in the war on corruption, the Minister emphasized the role of the Federal Police, which is, in his view, an institution that is working “as never before to combat the diversion of government funds.”

According to the Minister, 49 operations were carried out, resulting in the arrest of 1,006 people, including 465 civil servants.

“In just four operations to stop crimes against the administration, the Federal Police dismantled gangs that had already diverted more than US$ 1.09 billion (R$ 2.7 billion) from government coffers.”

ABr – www.radiobras.gov.br

The mayors cannot take it anymore. With a couple of exceptions, they find themselves included in the Fiscal Responsibility Law. The amount of funds they receive from the Union is not even sufficient to bear the expense of the respective administrative machines. Imagine, then, how they will be able to follow through with their campaign promises.

Six months have elapsed since the mayors’ election or reelection and they shudder at the law. They might have to increase taxes in order to maintain the routine services functioning. Soon, they will have a hard time going out in the streets.

Thus, the mayors will take advantage of the season of speaking rudely and threatening Brasília with retaliation as the Federal Deputies did by electing Severino Cavalcanti their president.

The mayors most pressing complaint is not about Lula, much less the Minister of Cities, Olívio Dutra. The claims go directly to the economic team.

It would be wise for Finance Minister Antonio Palocci and his companions to be watchful because 5,594 war-ready mayors can destroy anyone’s reputation, even a saint’s if they start the protests season in their municipalities as they threatened.

Holy Week or Nation Week?

One more postponement. At least according to what Senator Aloísio Mercadante announced, the reform would have been yesterday. It was not. From the Palácio do Planalto there started to flow rumors that Mr. Lula will complete the reform by Holy Week.

First, it was said that the rectification of the government team would happen by Christmas. It was postponed to the end of the year, then to January. Again it was sojourned, this time, till after the House and Congress elections.

After Carnaval became the new due date. As nothing happened, but the evidence that Senator Mercadante was badly informed, a new date came up: it will be known until Holy Week. Later, perhaps.

The President faces mountainous impediments. It’s enough for him to focus on a direction or name for a thousand obstacles to emerge. To take away ministries from the Partido dos Trabalhadores (PT) to give to the supporting parties was the premise, but when it came to personal nominations, the PT’s reaction was overwhelming:

“You can’t take this one nor that one; otherwise, you will face war at the political stage and in some states.” “And why keep Aldo Rebello as a political coordinator if José Dirceu does not want it and João Paulo Cunha finds himself in the air?”

A second wave of criticism surged from Partido Popular (PP), an abandoned party that has come back after Severino Cavalcanti’s victory as House speaker. The Maluf supporters want two ministries, two of the good ones.

As far as the PMDB is concerned, how can they get more seats if more than half of its deputies chose to disconnect themselves from the governing body?

Roseana Sarney would be placed in the party’s quota, even after being a PFL member. The governors Germano Rigotto, Luiz Henrique, Roberto Requião, Joaquim Roriz e Jarbas Vasconcelos may participate in the negotiations.

The PL moved its pawns as the PTB did. Based on the dimension of its political blocks and its loyalty, they deem themselves worthy of more ministries, heavy ministries, not second class ones. What to do with maniacs such as the PC do B? What would be the communists reaction if they lost one of their ministries?

Whether Lula solved the puzzle is not known. Would it be worth to wait till Nation Week to give the Independence cry?

Horror

Only after the votes for the labor reform are cast in Congress, will the labor reform issue be concluded. According to the proposal, the 13th salary and paid vacations would be split twelve times. Both would disappear in two or three years, given the successive loss of buying power of the salaries and the absence of readjustments according to inflation.

Compensation for firings without just cause would become optional. When being hired, the employer would waiver the benefit, given there should be open negotiation between employers and employees.

If the employee refused evrybody knows that the line of unemployed is huge. The pretext is to make the payroll lighter, a contractor’s demand.

By the way, a just demand, if it were not for the fact that the workers are the ones who are going to pay the bill. In the government, the barriers that impeded this social rights suppression are falling.

They say that the last one to accept the reform was the Minister of Labor, Ricardo Berzoini, the man who until recently was the biggest obstacle to sending the project to the legislative.

Carlos Chagas writes for the Rio’s daily Tribuna da Imprensa and is a representative of the Brazilian Press Association, in Brasília. He welcomes your comments at carloschagas@hotmail.com.

Translated by Aldo de Paula Jansel. He is a Brazilian student in Florida, USA, deeply interested in Brazilian politics. You may reach him at rednose431@hotmail.com.